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HomeMy WebLinkAbout1997-01-09 FPB MINUTES• • FIREFIGHTERS PENSION BOARD MEETING January 9, 1997 A regular meeting of the Englewood Firefighters Pension Board was called to order by Chairperson Bill Young at 3:05 p .m. in Conference Room A of the Englewood City Hall , 3400 South Elati Street. Members Present: Members Absent : Others Present: Bill Young, Chairperson, Employee Tom Bums, Mayor (arrived 3 :10 p.m.; left 4 :00 p .m .) Mike Gruninger, Employee Representative Frank Gryglewicz, Director of Financial Services Denise Lombardi , Council Appointee (arrived 4 :05 p .m.) Jay Seay, Employee Representative None Don Mazanec, William M . Mercer, Inc . Patrick Landry, William M . Mercer, Inc . John Shultz, William M. Mercer, Inc. Dan Brotzman, City Attorney Carol Wescoat, Recording Secretary Chris Olson, Employee (arrived 3 :30 p.m . left 4 :00 p .m .) A quorum was present. * * * * * Seating of re-elected Board Member Mr. Seay was congratulated on being re-elected to the Firefighters Pension Board. Election of Board Chairperson/President MR. GRUNINGER NOMINATED BILL YOUNG AS CHAIRPERSON/PRESIDENT. MR. SEAY SECONDED. Ayes : Nays : Absent : Abstained : The motion carried . Gruninger, Gryglewicz, Seay None Bums, Lombardi Young • Approval of Minutes PRESIDENT YOUNG MOVED TO TABLE ACCEPTANCE OF THE "MINUTES OF THE REGULAR PENSION BOARD MEETING OF JULY 24 , 1996 . MR. GRUNINGER SECONDED . Mayor Bums arrived 3: 10 p .m . Mr. Gruninger and Mr. Young have not listened to the tape of the July 24, 1996, meeting. Mr. Young indicated he still wants to listen to the tape. Ayes : Nays: Absent: The motion carried . Young, Bums, Gruninger, Gryglewicz, Seay None Lombardi MR. SEAY MOVED TO APPROVE THE MINUTES OF THE REGULAR PENSION BOARD MEETING OF OCTOBER23 , 1996 . MAYOR BURNS SECONDED. Ayes : Nays : Absent: The motion carried . OLD BUSINESS Young, Bums, Gruninger, Gryglewicz, Seay None Lombardi * * * * * Review of 1996 meeting attendance The board members reviewed the attendance record for accuracy. Discussion of procedures for determining eligibility for the 20% Supplemental Disability Mr. Brotzman stated that the Board should consider continuing the discussion of establishing procedures for determining eligibility. New Federal law changes could affect the disability programs . Mr. Gruninger suggested the Board proceed without waiting until the next quarterly pension board meeting when Administrative Services and Martin Semple have completed all necessary changes . Discussion ensued on the relation of the 20% Supplemental Disability benefit to the changes in Federal Laws . MR. GRUNINGER MOVED TO TABLE THE DISCUSSION OF DETERMINING ELIGIBILITY FOR THE 20% SUPPLEMENT AL DISABILITY BENEFIT UNTIL RELATED CHANGES HA VE BEEN FINALIZED BY ADMINISTRATIVE SER VICES AND MARTIN SEMPLE. MR. GRYGLEWICZ SECONDED . Firefighters Pension Board Meeting 2 • • • • • • Ayes: Nays: Young, Bums, Gruninger, Gryglewicz, Seay None Absent: Lombardi The motion carried . Mr. Gruninger clarified that if the related changes have been finalized, he would like a special meeting to continue discussion of the 20% Supplemental Disability benefit eligibility procedures. He also stated that the special meeting date would be at Mr. Brotzman's discretion when the items were finalized . Chris Olson arrived 3 :30 p .m . Discussion of plan document changes. Mr. Gryglewicz distributed a synopsis of the changes in the draft of the proposed plan document. Ms. Wescoat outlined items that should be reviewed by the Board. The first was that Firefighters should not have an apostrophe. Discussion regarding the remaining items needing attention followed. The item (I-2e), if acting pay is considered as pensionable earnings, was discussed. The item will be researched and response will be obtained for the Board . The item (I-3g & j), the definition of employee . The definition of employee was questioned and may need to be changed to "firefighter." Mr. Mazanec stated it was covered in G . The language for covered employment specifies employment as a paid member of the fire division. Discussion followed relating to the fact that employees in the Building and Safety Division are paid members of the fire division, but they are not firefighters. Mr. Gruninger stated that it only pertains to those hired prior to April 1978 and did not require further changes. Mr. Mazanec suggested inserting the term "includes all firefighters within the division hired prior to April 8, 1978." The item (V-3 §6), the increased benefits shall be adjusted on an annual basis with all adjustments subject to the availability of funds . This section will be reviewed after City Council has addressed the proposed plan document. The item (V-2), Mr. Seay questioned if the date of the document would take into consideration any individuals, who the Board might not currently be aware of the existence of deferred vested firefighters , who may be eligible for benefits. Mr. Mazanec stated the date of the document provides that benefits do not change for those who have previously left employment. The item (VI-1 §2), the last sentence of the paragraph is worded according to IRS regulations. Mr. Mazanec said, the intent of the wording is to prevent deferring too much of the benefit to the survivor. Firefighters Pension Board Meeting 3 The item (VII-I §I), top-grade firefighter. Mr. Brotzman commented that the term should read as first grade firefighter to conform with Colorado State Statutes. He has discussed this with Martin Semple and Randie Barthlome. Both agree that all references should conform with the Colorado State Statutes as first grade firefighter. Mr. Seay questioned ifthe participant's contribution accumulation (VII-I §3) should include interest. Mr. Mazanec indicated that it was included under the definitions section (l-3 §2f). The item (IX-I §3), the term of office for the president somehow was not correct and should only be for one year. The item (VII-I §3), Mr. Gruninger questioned the member who may be on a disability retirement and upon his death, does the survivor have the right to claim the participant's contributions accumulation . Article ill, § 3, provides that no benefit will be payable from this plan if the participant received a death or disability benefit from another plan. Minor grammar and format corrections were noted . The item (XII-2 §3), changes were made to include child support payments, but not for the new Colorado State Statutes relating to divorce settlements. Mr. Schultz indicated the matter was covered under §4 when referencing Colorado State Statutes Section 14-10- • 113( 6). Further questions included whether it is necessary to specify the amount, either as • a percentage of benefit payment, or a flat amount to be withdrawn from the participants benefit portion . The item (XIV-2 §4), the amounts returnable to the employer does not include a section specifying returnable amounts of the remaining assets upon the last recipient's death . Mr. Mazanec suggested adding an item d, to include the unused funds are returnable to the City for fire division purposes . Mr. Mazanec pointed out the need to add a section d to Article VIII, which dealt with forfeitures for disability recipients . This would insure better understanding of the intent of the plan . Mr. Olson suggested removing the verbiage in parenthesis on the first line of Article 1-2 , §2e. The verbiage refers to members of the collective bargaining contract. Mr. Olson pointed out there are members who are not covered by the collective bargaining contract. Discussion ensued removing the verbiage. The Board agreed to remove the phrase . Mayor Bums and Chris Olson left 4 :00 p .m. Discussion followed outlining timing of the presentation of proposed plan document to City Council and potential timing of a ballot item . Firefighters Pension Board Meeting 4 • • • • Mr. Gryglewicz inquired if the proposed plan document will require a TABOR Question on the November ballot. Mr. Gruninger questioned the effect increasing the participants' contribution level would have on the fund liability . Mr. Mazanec responded that increased participant contribution levels would have an effect on the overall liability of the fund . NEW BUSINESS Ms. Lombardi arrived 4 :05 p.m. Discussion of the 1997 actuarial fee schedules from William M . Mercer, Inc. Mr. Gryglewicz presented the December 6, 1996, fee schedule letter from William M. Mercer, Inc. The proposed fees are $3,200 for valuation years, and $270 per meeting for years that a valuation is not done . He also added that the possibility existed for additional fees for calculating payout options if the new plan document is approved with that proposed item . Mr. Mazanec will provide the cost of the calculating the increased liability amount for the proposed changes included in the proposed plan document. The board will not be concerned with additional annual fees resulting from changing the plan document until the document has been approved . MR. GRUNINGER MOVED TO APPROVE THE 1997 FEE SCHEDULE FROM WILLIAMM. MERCER, INC. MR. GRYGLEWICZ SECONDED . Ayes : Nays : Absent: The motion carried. Young, Lombardi, Gruninger, Gryglewicz, Seay None Bums Review the information required by Fire and Police Pension Association to complete the Volunteer Firefighters actuarial report . Mr. Gryglewicz presented the options from which the Board must select the necessary information that must be provided for Fire and Police Pension Association to complete the Volunteer Firefighters actuarial report. Fire and Police Pension Association will provide two optional calculations in addition to the Volunteer Firefighters current benefit. The Board agreed to get the maximum benefit the funds will support and a benefit of $300 per month for participant retiree and $150 per month for survivors. The benefit should be effective as of January 1, 1997. Firefighters Pension Board Meeting 5 The amount that was actually transferred to Fire and Police Pension Association by Dodge & Cox was $622,913 .37. * * * * * MEMBERS CHOICE Mr. Gruninger asked Mr. Gryglewicz ifthe procedures that are currently being used are okay as far as using funds from the same source for the 20% Supplemental Disability and the pension benefits. Mr. Gryglewicz commented that there seem to be no problems. Discussion followed as to the relevance of the benefit checks being issued by the City and not the Firefighters Pension Plan . Mr. Gryglewicz will verify the legality of the method of payment currently being used . MR. SEAY MOVED TO ADJOURN . MR. GRUNINGER SECONDED. Ayes: Nays : Absent: Young, Gruninger, Gryglewicz, Lombardi, Seay None Burns Meeting adjourned at 4 :20 p .m . ~~w~ Carol Wescoat Recording Secretary Firefighters Pension Board Meeting 6 • • •